Module 8: Priority Sector Advances & Sectoral Lending (Figure 5.6.4)
Priority Sector Lending (PSL) is an RBI mandate requiring banks to allocate specified proportions of their lending to development sectors such as agriculture, small enterprises, and education. In Bihar, priority sector advances constituted 67.1 percent of total bank credit in 2019-20.
Figure 5.6.4: Sectoral Share of Advances under Annual Credit Plan (2019-20)
- Priority Sector Advances (67.1% of Total):
- Agriculture Sector: 41.4 percent of total advances
- Micro, Small and Medium Enterprises (MSME): 17.2 percent of total advances
- Other Priority Sectors: 8.5 percent of total advances
- Non-Priority Sector Advances: 32.9 percent of total advances
Industrial Lending Deficit:
The low proportion of credit channeled to small and medium enterprises (17.2%) is a major structural bottleneck in Bihar. Expanding credit absorption requires rapid upgradation of industrial infrastructure, 24x7 industrial power, logistics parks, and transparent regulatory clearances.
- Priority Sector Advances (67.1% of Total):
- Agriculture Sector: 41.4 percent of total advances
- Micro, Small and Medium Enterprises (MSME): 17.2 percent of total advances
- Other Priority Sectors: 8.5 percent of total advances
- Priority Sector Advances (67.1% of Total):
- Agriculture Sector: 41.4 percent of total advances
- Micro, Small and Medium Enterprises (MSME): 17.2 percent of total advances
- Other Priority Sectors: 8.5 percent of total advances
Answer this question, then use Next.
What was the share of the agriculture sector in the total bank advances in Bihar under the Annual Credit Plan 2019-20?
One-liners
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Priority Sector Advances (67.1% of Total): Agriculture Sector: ______ of total advances
41.4 percentMicro, Small and Medium Enterprises (MSME): ______ of total advances
17.2 percentOther Priority Sectors: ______ of total advances
8.5 percent